The $7 billion U.S. builders' and cabinet hardware market is benefiting from a surge in new home construction and rising personal income. These positive trends have increased demand for lock products, other door and builders' hardware, and cabinet and furniture hardware. The strongest gains are for electronic locks, keys, window hardware, door hinges, exit devices and drawer slides. These trends were uncovered by analyzing U.S. shipments, imports and exports. SBI evaluated the determinants of demand as well. Data was correlated with U.S. construction spending and other economic trends in order to estimate and forecast each product line. SBI also analyzed the cost structure of U.S. builders' and cabinet hardware plants, plant profit margins and the competitive environment. Market share is calculated for the top 12 suppliers.
Scope And Methodology
The SBI Market Profile on Builder’s and Cabinet Hardware is a guide to the growth- and profit-oriented opportunities in this industry. This comprehensive database covers U.S. shipments, imports, exports, end-use market purchases, factors affecting demand, remodeler demographics, the cost structure of domestic plants, the Canadian market situation, and the competitive environment. In addition, manufacturers and marketers are profiled in order to review competitor strategies.
Overall industry trends are analyzed in the Executive Summary Section (Section 1). U.S. market sales are calculated from U.S. Department of Commerce statistics by collecting data on domestic plant shipments, adding imports, and subtracting exports. Price trends are also evaluated from the Bureau of Labor Statistics Producer Price Index. SBI provides a comparative analysis of this industry’s various product sectors in order to pinpoint the important and growing sectors.
A similar analysis is conducted for each of the industry’s major product sectors — Locks, Other Door and Builder’s Hardware, and Cabinet and Furniture Hardware (Sections 2, 3, and 4). Each section provides further segmentation by product line. The shipment data is for all domestic manufacturers, whether plants are owned by U.S.- or foreign-based companies and whether or not plants specialize (50% or more of total facility revenues) in one of the above market sectors. Import data is derived from U.S. Custom records by product and major countries of origin. SBI computed imports’ share of total market sales in order to evaluate the competitive position of foreign manufacturers. A similar analysis is provided for Plastic Hardware products and Automatic Door Openers (Sections 5 and 8). Each market sector section also includes U.S. export shipments by product. Export shipments are compiled from the Department of Commerce and include data on major countries of destination. Canadian shipments, imports, and exports are analyzed from Statistics Canada data (Section 11).
Market sales are also segmented by end-use market. Section 6 analyzes new and remodeling residential construction markets, new and remodeling nonresidential markets, do-it-yourself (D-I-Y) and buy-it-yourself (B-I-Y) markets, manufactured housing markets, and door and window manufacturer markets. SBI also analyzes metal hardware purchases by furniture, fixture, and cabinet plants (Section 9). These data trends were supplemented with an investigation of the factors affecting domestic demand. SBI analyzed spending on new building construction, housing resales and starts, new housing characteristics, homeowner remodeling spending, personal income and mortgage interest rates, and household demographics to uncover the key determinants of demand.
Simmons Market Research Bureau data provide demographics of the replacement door lock and doorknob purchasers and automatic garage door opener purchasers. Demographic snapshots are provided by sex, age, race and ethnicity, marital status, household income, education, occupation, household size, children by age, kind of residence, and region. Simmons provides additional data on purchaser demographics by amount spent and whether the purchase was part of a D-I-Y or a B-I-Y project.
SBI also supplies data on the cost structure and profitability of U.S. plants specializing (50% or more of total plant revenues) in the manufacture and sale of builder’s and cabinet hardware (Section 10). U.S. Department of Commerce data covering these plants are supplemented with individual company sales data in order to calculate company market share. Company sales statistics are compiled as part of an exhaustive effort to provide competitor intelligence (Section 12). Annual reports, databases, and trade journals were searched for growth- and profit-oriented strategies.
Action-oriented executives are urged to use this comprehensive statistical database and competitive information to develop new products, target key demographic markets, expand foreign market sales, and initiate profitable operating strategies. Executives are urged to compute your own company’s market share and compare your company’s operating ratios to the industry average as part of this process.